RETIREMENT FUND 


FOR EMPLOYED 
OFFICERS 


OF THE 
YOUNG MEN’S CHRISTIAN 
| ASSOCIATION 


REPORT TO THE INTERNATIONAL CONVENTION 
ATLANTIC CITY, N. J.. NOVEMBER 14-19, 1922 
by the 
BOARD OF TRUSTEES FOR THE YOUNG MEN’S CHRISTIAN ASSOCIATION 
RETIREMENT FUND, Incorporated 
347 Madison Avenue, New York City 














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REPORT OF BOARD OF TRUSTEES Y. M. C. A. RETIREMENT 
FUND TO THE INTERNATIONAL CONVENTION, 
ATLANTIC CITY, NOVEMBER 14, 1922 


For a better understanding of the work of the Board of Trustees of the 
Y. M. C. A. Retirement Fund it would seem in order to briefly review the steps 
that have been taken from the time an Association employed officers retirement 
plan was first talked about until its present state as a going concern. With but 
slight overlapping there have been four distinct periods of progress in the estab- 
lishing of this Fund: First, the period of agitation and discussion; second, the 
period of investigation and preparation; third, the period of organization and 
promotion; and fourth, the period of operation. 


PERIOD OF AGITATION AND DISCUSSION 


While the idea of a Retirement Fund for Y. M. C. A. officers had been vaguely 
floating through the minds of laymen and secretaries for the past fifteen years or 
more, it was not until the Employed Officers’ Association held its conference at 
Columbus, Ohio, in 1911 that the subject came before the Brotherhood in the form 
of a concrete proposition. In the report of a commission on Association employed 
personnel made at that conference it was recommended that definite provisions 
be made for a Retirement Fund for Association secretaries, and specified certain 
general conditions that should obtain in the administration of such a Fund. This 
excellent recommendation took more definite form at the International Convention 
held at Cincinnati in 1913, when a Committee on Training Agencies advised that 
a retirement plan be created that would, through the raising of a fund of one 
million dollars, provide an income which could be used for the retirement of old 
- secretaries. Judged by the heartiness with which the recommendation was received 
the delegates present evidently felt that here was an unfulfilled duty of the 
brotherhood that should receive prompt and serious attention. As a result of 
convention action there was early appointed a Board of Trustees with full 
authority for the creating and management of such a Fund. Unfortunately, the 
appointment of the men to constitute this Board was from laymen so widely 
scattered throughout the United States and Canada that it was never possible to 
convene the first meeting, and furthermore, of the ten named to serve at least 
half of them promptly sent in their resignations. The subject was talked about, 
however, where groups of employed officers got together, and Fred B. Shipp, at 
that time Executive Secretary of the International Committee, after some first- 
hand investigations of what would be involved in creating the Fund, secured the 
consent of a group of prominent laymen to serve until the next Convention. The 
International Committee agreed to advance the funds to cover the salary of a 


3 


special secretary on retirement, and interested Lyman L. Pierce, who had recently 
resigned from the General Secretaryship of the Pittsburgh Association, to make 
a preliminary study of retirement systems and operations in other organizations. 
Mr. Pierce shortly after accepted the call to the San Francisco secretaryship, 
and so was unavailable for further service, and Mr. Shipp later became the 
General Secretary of the Pittsburgh Association. As this left the matter without 
an executive officer to give time and thought to its development, the Retirement 
Fund Board called on the Senior Secretary of the then Secretarial Bureau of the 
International Committee to give the necessary executive attention to getting the 
Fund started. 


PERIOD OF INVESTIGATION AND PREPARATION 


In anticipation of the Cleveland Convention of 1916 investigations were started 
as to what was really involved in the creating of a scientific and sound Retirement 
Fund plan for Association employed officers. It was early discovered that the 
raising of a million dollars was not the immediate problem. In fact, it was soon 
very clear that we could not tell how much money would be needed to provide such 
a Fund without first making a careful study of all the factors involved. Further 
inquiries into the subject of pension plans and retirement funds brought to light 
the unpleasant fact that many similar benevolent provisions for faithful servants 
had failed. Naturally these distressing failures had brought great embarrassment 
‘ to those responsible for their administration and much anxiety and discomfort 
to the recipients of the supposed benefits. Your Board was impressed at the 
outset with the high importance of building a retirement plan on an absolutely 
sound foundation. The Board of Trustees was convinced that safety depended 
upon a plan that reflected the actual experience of the Association Movement, 
and that did not depend upon figures and estimates borrowed from some other 
pension scheme. Two additional factors were discovered: (1) That a wholly 
endowed plan while comparatively simple at first would gradually demand an 
impossible amount of money; (2) that if the plan was to make any reasonable 
provision for the present generation of secretaries that there was an accumulated 
liability for past service that would have to be taken care of before the plan 
could be made effective. It was, therefore, early decided that the type of pension 
scheme known as the “contributory plan” was the one that we should use. By 
“contributory plan” we mean a plan by which the one who is later to receive 
the benefits of the Fund would make periodical payments to it; and that the organ- 
ization employing him would similarly contribute, and that from these two 
sources there would be created a fund from which annuities would be paid when 
the individual had reached the age of retirement. Next, to make it possible for 
employed officers of middle life or beyond to thus accumulate sufficient funds for 
the payment to them of retirement annuities, adjustments would need to be made 
in the amount that they would pay or that the Associations would pay on their 
behalf. If they paid their full share to provide a worth-while retirement allowance, 
it would in many cases take a very considerable percentage of their income. That 
is why it was deemed necessary to raise an “Accrued Liability Fund.” The 
Board of Trustees, therefore, after careful inquiry, appointed a skilled actuary 
to make a study of the whole subject. This actuary, Mr. George B. Buck, an 
acknowledged expert in the field of pension building, suggested a program of 
six preliminary steps to the organizing and operating of the Fund. These recom- 


4 


mended steps were laid before the Cleveland Convention in the report of the 
Board of Trustees and their adoption was unanimous. These steps had to do 
with the securing of personnel data, the proper tabulation of the same, and then 
deriving from this mass of information certain basic facts and tables that would 
make possible several sample rates and plans that the Retirement Fund Board 
could then consider. This was a tedious piece of work extending over several 
months. Ultimately there were laid before the Board six plans for a Retirement 
Fund for Association Employed Officers, and these different plans in turn were 
submitted to leading employed officers and laymen, and a conclusion finally reached 
as to the one which best met the needs of our Brotherhood. This plan was finally 
adopted by the entire Brotherhood and received formal approval of the Cleveland 
Convention of 1916. A full description of the plan accompanies this report as 
Exhibit A. Following that Convention a period of promotion began, but before 
much progress had been made America’s entry into the World War interrupted 
all further proceedings until shortly before the Detroit Convention of 1919. 


PERIOD OF ORGANIZATION AND PROMOTION 


A full report was made to the Detroit Convention as to how the plan would 
function. There was also presented a revised valuation of the assets and liabilities 
of the proposed fund and which we here repeat. 


A VALUATION OF THE ASSETS AND LIABILITIES OF THE PROPOSED RETIREMENT PLAN 
FoR EMPLOYED OrrFicers oF Y. M. C. A., January 1, 1920 


Benefits Contributions 
The present value of the re- The present value of secre- 
tirement allowances to be taries’ contributions used 
paid to members of the for purchase of retirement 
present active force who benefits. 
retire after attaining age Superannuation benefit ... $1,749,055 
sixty. . Disability benefit ......... 306,396 
Due to past service ...... $3,343,856 ——___—— 
Due to future service .... 3,498,110 TOtalarertttae cttecls tee $2,055,451 
The present value of Asso- 
Thorareesat alientt he rage ciations’ contributions for 
disability allowances to be retirement benefits ........ 2,085,400 
paid to members of the The present value of the 
present active forces who accrued liability, t.e., the lia- 
become disabled after com- buity not coyre ed _ by Soe 
pleting five years of serv- centage contributions 0 
CCE MCRL ooo soso SG oe oes 1,039,078 secretaries and Associations *3,740,193 
Total benefits .......... $7,881,044 Total contributions ..... $7,881,044 


Since the Detroit Convention serious work has been done by your Board in 
bringing this Fund to its present stage. There were four main steps to be taken 
in the process of establishing the Fund. First, there had to be secured signed 
agreements to participate from a majority of the employed officers of the Asso- 
ciations of North America. This was a comparatively easy step, notwithstanding 


* The amount of the accrued liability has increased since this valuation was made. To be 
on the safe side the Board of Trustees decided upon the sum of $4,000,000. A revaluation will 


be made as of January 1, 1923. 


it called for a considerable amount of education through circulars, letters, personal 
interviews, and addresses before groups of employed officers all over the country. 
The actuary had stated that as a matter of safety at least 2,500 employed officers 
out of the 5,000 should agree to participate in the Fund. We are glad to state 
that at the present time there are more than 3,500 registered participants as well 
as about 500 others that have applied but whose papers have not been satisfactorily 
cleared with regard to past service or other details. 


The second important step and one which seemed more difficult to take was the 
securing of signed agreements from Boards of Directors of local Associations, 
as well as State Committees, and the National and International Committees to 
participate on behalf of their employed officers. This also called for considerable 
educational work. Many boards recognized the need and value of the Fund at 
once, and promptly passed resolutions approving the plan and agreeing to par- 
ticipate on behalf of the men on their secretarial staffs. It took more time to 
convince others. In some cases independent investigations were made as to the 
reliability of the scheme and the responsibility of those in charge. To satisfy 
the local Association boards that had doubts about the character of the enterprise, 
the Board of Trustees made special inquiries from experts in pension matters 
which included a number of the actuaries of leading life insurance companies. 
All investigations of this sort gave a clean bill of health to our plan, and a high 
endorsement of the thoroughness and reliability of the actuarial work that had 
been done. At the present writing there are 892 Associations in the United States 
and Canada that have taken formal action to participate in the Fund, and are now 
making their regular payments on behalf of their own participating employed 
officers. In this way payments for 4,275 men are guaranteed by their Associations. 

The third step was the raising of the Accrued Liability Fund. The actuary’s 
report indicated that on January 1, 1920, this amounted to $3,740,193. To provide 
for all contingencies and on the advice of prominent Association laymen the 
Board decided upon the round figure of $4,000,000 as the amount that must be 
secured. Association men have the reputation of being expert in money raising. 
They demonstrated this during the War when overwhelmingly huge sums were 
raised in a remarkably short time. The feeling was general that this step would 
be the least difficult one to take. At this point we had some bitter disappoint- 
ments. During the period of business prosperity following the Armistice we 
were prevented from entering the field to campaign for this money due to the 
fact that the Interchurch World Movement had just launched its tremendous 
financial canvass, and it seemed inappropriate for our Movement to be also 
canvassing for funds from many of the same donors who would give to that 
great enterprise. Before the Interchurch canvass had come to a conclusion there 
set in the great business depression that made all but impossible the raising of 
money for any cause whatever. As the failure to secure this Accrued Liability 
Fund threatened to undo all the previous hard work and expense to get the 
Fund into operation, it was finally decided, after much counselling with influential 
laymen and employed officers, that in spite of the immense difficulties created by 
the business situation we must go ahead and secure this money. At the meeting 
of the Employed Officers’ Association held at Lake Geneva in January, 1921, the 
chairman of the Retirement Fund met with a group of the leading local and 
state secretaries attending that conference, and a general plan was devised for a 
quiet canvass for the Accrued Liability Fund. 


6 


At this meeting it was decided that the Board of Trustees under the personal 
leadership of Dr. Mott should assume responsibility for securing the first two 
millions, and that a committee of laymen and secretaries under the leadership of 
Mr. A. H. Whitford, General Secretary of the Buffalo Association, should under- 
take a canvass for the remaining two millions. This plan met the approval of 
the Employed Officers’ Conference and later was confirmed at a meeting of the 
Board of Trustees of the Retirement Fund. As an expression of the employed 
officers’ interest in the Fund, and of their eager desire to see the Accrued Liability 
Fund promptly raised, there was initiated at the Geneva Conference a campaign 
among the employed officers of North America for a unit gift of $200,000 which 
was to apply on the first two millions. Mr. L. A. Coulter, State Secretary of 
Texas, who first suggested the idea, was asked to serve as chairman of a 
committee for the instituting of a nation-wide campaign. During the summer, 
he, in cooperation with others, developed a plan of canvass, and in a short, 
intense period of two weeks there was quietly raised among the employed officers 
of North America a unit gift fund of $346,104. The secretaries were asked to 
give on a basis of 1% of their annual salary per year for five years. There were 
3,334 subscribers to the Fund. There had been a previous subscription of $34,000 
for initial expenses from this same source which had been made at and following 
the Detroit Convention. This gift was on a basis of $1.00 for each year of 
Association service. These voluntary gifts from our employed officers are 
indicative of the confidence they have in the plan and their earnest wish to have 
it put into operation. 

Dr. Mott’s days and hours are planned for long ahead and it was not easy for 
him to rearrange his program to give the Retirement Fund the right of way. 
He realized, however, that the time for action had struck, made the costly adjust- 
ments necessary, and threw himself with intense earnestness into the task of raising 
$2,000,000 in a time of great business depression. 


There had been made a conditional subscription of $50,000 by a member of the 
Board of Trustees, which at a conference of wealthy laymen in Chicago in the 
previous April had been increased to $100,000. This subscription, with the unit 
pledge of the employed officers, helped to give substance to the appeal that 
Dr. Mott made to Mr. John D. Rockefeller, Jr., which resulted in a conditional 
gift of $750,000 from the Laura Spelman Rockefeller Memorial and a similar 
personal gift of $250,000 from Mr. John D. Rockefeller, Jr. This magnificent 
response is one of the marked evidences of answered prayer that accompanied 
this quiet canvass. The correspondence between Dr. Mott and Mr. Rockefeller 
accompanies this report as Exhibit B. The announcement of the great gift right 
in the midst of summer vacation gave courage to the Brotherhood, and was a 
stimulus to the campaign for the rest of the money. There is tabulated elsewhere 
in this report the details with reference to the various gifts that made up the 
total of this magnificent fund. (See Exhibit C.) Dr. Mott undertook to round 
out his part of the undertaking by the first of January, 1922. He was able to 
report six weeks in advance of that date, at a meeting of the General Secretaries 
held at Atlantic City in November, 1921, that subscriptions had been secured, 
including the Rockefeller gift, that at that time aggregated $2,025,000. Then 
promptly followed the organization of the Campaign Committee to which Mr. 
Whitford gave the needed leadership. It had been hoped that the work of this 


7 


committee would be completed during the spring of this past year. Certain unex- 
pected difficulties developed that delayed the finishing of the Fund in the time 
planned. On the whole the delay proved beneficial as there was an added educa- 
tional value through the distributing of the load as widely as possible throughout 
the country. Many Associations and individuals who accepted the idea of the 
Fund as simply a good idea came to understand it in detail. Just as participating 
Associations agreed to share in the future payment on behalf of their staffs, many 
agreed to share in the payments for past services through a pledge from current 
expense budgets or by covering gifts from individuals. The general state of 
Association finances the country over, and the extremely slow recovery of business 
prosperity, made the securing of an adequate number of satisfactory pledges from 
Associations and individuals a long-drawn-out process. Many Associations were 
in a bad way financially. Heavy current expense debts had accumulated, much 
needed repair or extension work was held up, there had been staff reductions 
and program curtailments, and there were the responsibilities of these Associations 
to the Home and Foreign budgets of the International Committee, and to the 
taintenance of the Training Agencies. All this added to the problem of the 
Campaign Comrnittee. Further details on this great effort will be found in 
Exhibit C. The fourth important step was the setting up of the operating machin- 
ery. This called for the technical aid of actuary and auditor and many hours 
of hard work of our secretaries. In May of this year at a meeting of the Board 
of Trustees the campaign for this Fund had reached a stage where its early com- 
pletion seemed assured. The Board of Trustees, therefore, decided to begin 
operations July 1, 1922, with the understanding that the actual payment out of 
retirement allowances would not begin until the Board was satisfied that it had 
in hand satisfactory pledges aggregating four million dollars. 


PERIOD OF OPERATION 


We thus on July 1, 1922, entered upon the period of operation. Starting a big 
business in the summer time, following the strain of a long period of promotion 
and with tried and trusted clerks needing a vacation, breaking a new pathway 
of operating procedures, was not an easy task, for it must be understood that 
this Fund has nearly five thousand separate accounts, all active, requiring accurate 
monthly bills to Associations and individuals to flow out with regularity and the 
returning payments of many small sums to be properly posted and banked, and 
receipts sent out each month. Incidentally many corrections and adjustments 
have to be made each month due to changes in salaries or locations. This, with 
the handling of the payments to the Accrued Liability Account, has involved a 
piece of accounting procedure which we think very creditable to Mr. O. T. 
Johnston, C. P. A. of the International Committee staff, who made the preliminary 
plans for the accounting system and to the firm of Hurdman and Cranston, 
Certified Public Accountants, who directed its installation and adapted it to the 
peculiar requirements of the Fund, and to our own efficient Retirement office 
staff who do the work. 


Briefly the work of administration of this great trust breaks up into five general 
divisions. First, that which has to do with publicity and promotion, and which 
results in the continuous advent of new participants in the Fund. Like any 
insurance concern it is dependent upon a steady inflow of new business. This 


8 


end is being attained through the use of circulars, letters, bulletins, and printed 
articles in Association papers as well as addresses at conferences and gatherings 
of secretaries. By thus keeping the fact of the Retirement Fund and its benefits 
before the Movement the young men coming into service are enlisted and the 
interest of the participants is maintained. 


A second section of the work of considerable importance is registration. Now 
that an employed officer’s past service in the Movement has a dollars and cents 
value it is highly important that we have records of unquestioned accuracy for 
the period spent by men in Association work up to July 1, 1922, in order that 
these men may have proper credit for that portion of the Accrued Liability fund 
to which they are entitled at the time of their retirement. The receiving, checking, 
and registering of the participants, with the securing of their proper applications 
with all the necessary details as to date of birth, salary, time of entry and 
leaving the work, and various changes that have occurred, is an important item 
in the smooth working of our retirement machinery. While the procedure on 
retiring is made as simple as possible, there are certain formalities that must be 
observed before the Board of Trustees is justified in authorizing the payment of 
retirement or disability benefits. On the date the Fund went into effect there 
were 204 employed officers sixty years of age and over, who were eligible to the 
benefits of the Retirement Fund. Of this number, eighty have filed application 
for retirement. There is shown elsewhere a list of those to whom regular or 
disability allowances have been granted by the Retirement Fund Board at the time 
we go to press. (See Exhibit D.) 


Third, the Accounting Section of the work is a very large part of the business 
of operating the Fund. Any failure to do this work accurately, rapidly, and 
well would throw the whole undertaking into chaos. A procedure has been 
carefully worked out for every step in the entire accounting process, and a 
business secretary and staff have reduced to a regular routine the processes for 
billing and receiving the premiums from Associations and employed officers, the 
crediting to each individual account of the payments made on his behalf, as well 
as keeping general accounting records of the details of investments, expenses, 
etc. A section of the operating work which is highly important has been the 
reconciling of the reported pledges to the four million dollar fund with the 
pledges actually sent in. Many cases of adjustment had to be made, and others 
need still to be made. From now on we will be busy in collecting the payments 
that fall due annually during the next three and a half years. 


Fourth, the Investment Section. As funds accumulate in excess of what is 
necessary to meet the payments on account of retirement or disability benefits, 
after retaining a reasonable margin on deposit in the banks the balance of the 
money is put into high-grade securities of the type that satisfy the conditions of 
the insurance and investment laws of the state of New York governing trust 
funds. A list of these investments to date is also published with this report. 
(See Exhibit E.) We have had the disinterested advice of well-known, con- 
servative investors in the purchase of our securities. Our funds are deposited 
with the Central Union Trust Company, the National Bank of Commerce, and 
the Bankers Trust Company, all of New York City, and for all Canadian funds 
with the Bank of Montreal (Toronto Branch). 


9 


Fifth, the Actuarial Service. In order that the Retirement Fund Plan be on 
a basis that is at all times thoroughly sound it is necessary for a periodical revalua- 
tion of the entire plan. This work will be done by our actuary, Mr. George B. 
Buck, whose carefulness and knowledge of the entire subject has been invaluable 
in the creation, starting, and operating of our Fund. Through his help the 
constitution and by-laws were prepared, revised, and finally as now published, 
represent the conditions of operation under which the Fund was incorporated in 
1921. These are found in the appendix to this report. (See Exhibit F.) 


GENERAL SUPERVISION 


Your Board of Trustees has taken its responsibilities seriously. Meetings are 
held several times a year at which reports are presented by the subcommittees 


on special claims and on investments and there are discussed the many problems 
of administration. 


The chief executive officer of the Retirement Fund Board has been the secretary 
of the Personnel Bureau of the International Committee who has served without 
salary. It has been of great convenience to have the office of the Fund where the 
‘record files of the Personnel Bureau are easily accessible. This has saved 
expense in office space and supervision, and has facilitated the handling of the 
many responsibilities and details involved during the formation period of the 
Retirement Fund. A financial statement accompanies this report showing the 
condition of the Fund as revealed in its four main accounts on November Ist. 
(See Exhibit G.) At first there are expenses that will disappear when the Fund 
has had a longer time to run. The plan provides for the expenses of operation to 
be met out of the payments made by Associations on behalf of participating secre- 
taries. A small loading of the rate paid by Associations is deemed sufficient for 
this purpose. This is the common practice of all insurance companies and pen- 
sion schemes similar to ours. 


FINAL WorK 


After the unsuccessful effort to get together a working group of trustees on 
the plan proposed at the Cincinnati Convention it was recommended at the Cleveland 
Convention of 1916 that the appointment of the Board of Trustees should be left 
to the International Committee, with the understanding that the men so selected 
should live near enough to each other so that the holding of frequent meetings 
would not be a difficult matter. It was also expressly stated from the Convention 
platform that when the Fund could be gotten on an operating basis the participants 
should have a voice in its management. Just as great insurance companies have 
been mutualized we feel that it makes for greater democratization within our 
own ranks to have those who trust their money to the Fund to have a voice in 
the management of the Fund. As a step to that end the constitution provides that 
triennially there shall be held a meeting of participants who will elect three 
trustees for a term of nine years. These will replace two appointed at the Cleve- 
land Convention of 1913. In connection with this Convention such a meeting will 
be held. Similar procedure will take place at the time of the International Con- 
ventions of 1925 and 1928. Mutualization will then be completed. 

The creation of this retirement plan has been watched with the deepest interest 
by other organizations. While the Association Movement is subject for criticism 


10 


for the way it has lagged behind church boards and other organizations and insti- 
tutions in the matter of establishing retirement provisions for its employed officers, 
there has also been a real gain in that it has given us an opportunity to study 
carefully the operation of other plans and profit by their experience. The plan 
that has been devised for the Association may serve as a practical suggestion to 
similar organizations in the creating of their own retirement plan. We are hopeful 
that our sister organization, the Y. W. C. A., will before long have its Retirement 
Fund on as satisfactory an operating basis as that of the Y. M. C. A. Inquiries 
also from the National Associations of Australia, South America, New Zealand, 
Great Britain, China, and European countries indicate the possibility of similar 
plans being instituted in these countries. We are happy if our experience may 
be of any help to them. 


To the many friends of the Association Movement who through prayers and 
gifts have made possible this magnificent undertaking, and to the many secre- 
taries whose belief in this Fund as the greatest stabilizing factor in our Association 
personnel has led to their personal sacrifices of time from their busy lives and 
of pledges from their own limited resources, we extend greetings. It has been 
a long, tough pull together and while there have been vexatious delays the ultimate 
success of the undertaking was never in doubt. The Retirement Fund is peculiar 
in the fact that with almost no exception laymen and employed officers have 
believed in it from the start and done their duty by it. It is because of this 
practical unanimity that we are happy at this Convention to report that this so 
long talked of project is now an actuality. 


Respectfully submitted, 


The Board of Trustees of the Young Men’s 
Christian Association Retirement Fund, Inc. 


F. Wayranp Ayer, Chairman 
James H. Post, Treasurer 

Wm. D. Murray 

Lucien T. WARNER 

GERALD W. Birks 

Joun R. Mort 

L. Wirpur MESSER 

ALFRED E. MArLING 

Raymonp P. Kaicun, Secretary 


EXHIBITS 


The Plan. 

Correspondence—Dr. Mott and Mr. Rockefeller, Jr. 
Statement of Accrued Liability Canvass. 

List of Retired Secretaries. 

List of Investments. 

Financial Statement. 

Constitution and By-laws, 

International Convention Action Reference Retirement Fund. 


11 


TOO Sp 


RECOMMENDATION: This Convention approves of the Constitution and 
By-laws adopted by the Board of Trustees of the Young Men’s Christian 
Association Retirement Fund and of the steps taken that have led to the 
successful establishment of this Fund. 


EXHIBIT A 


THE RETIREMENT FUND PLAN 


BENEFITS 


There are three benefits to a participating employed officer in the Retirement 
Fund. 


I. A Retirement Benefit 


Any participating employed officer who attains age sixty, upon retirement may 
receive an annual allowance for life actuarially determined from the fund accumu- 
lated on his behalf. For convenience in calculating, this is expressed as approxi- 
mating 114% of his average salary for the last ten years of his service multiplied 
by the number of years of his aggregate service as a full-time Association 
employed officer. There are also certain options which if taken at time of retire- 
ment make possible payments to one’s estate in the event of death while retired. 


(Illustration: Average salary last ten years $3,000, length of service 35 years; 
$3,000 & 11%4% per cent = $45; $45 x 35 = $1,575, the annual retirement 


allowance.) 


II. A Disability Benefit 


After five years of service any participating employed officer may retire if totally 
and permanently disabled regardless of his age. Upon retirement he may receive 
an annual allowance for life actuarially determined to equal approximately 1% of 
his average salary for the last ten years of his service multiplied by the total 
number of years to his credit as a full-time Association employed officer. 


III. A Withdrawal Benefit 


Any employed officer who withdraws after one year of participation will receive 
the total amount he has contributed to the Retirement Fund with 4% compound 
interest. In the event of the death in service of a participating employed officer 
the payment will be made to his estate or designated beneficiary. 


Sources or INCOME 


The money to provide the benefits of the Fund is derived from three sources. 


I. From the Employed Officer. The employed officer pays a fixed percentage of 
his salary that varies from 4.1 for twenty-seven years of age or younger up to 6.7 
at age fifty-nine. The actual amount he pays annually changes as his salary 
changes but the rate per cent is constant. The rates for each age are shown in 
the published table of rates. Since his money can be withdrawn if he leaves the 
fund after participation for one year or more, the employed officer pays on what 
is known as a savings bank basis. The rate averages higher than what an Asso- 
ciation pays. 


12 


Il. From the Association. The Association on behalf of a participating em- 
ployed officer pays to the Retirement Fund Treasurer a similar fixed percentage of 
his salary. The payments average less than what an employed officer pays since 
they are made on the tontine or group basis. No money is returnable to the 
Association. 


Ill. From the Accrued Liability Fund. This is the $4,000,000 fund raised to 
cover payments for the aggregate years of Association service of participating 
employed officers prior to the starting date, July 1, 1922. 


Poe BET 


CORRESPONDENCE BETWEEN Dr. Mott AND Mr. ROCKEFELLER 


LETTER FROM MR. JOHN R. MOTT 


. 


347 Madison Avenue, New York City. 
August 20, 1921. 


To the Leaders of the Young Men’s Christian Associations of North America. 
Dear Friends: 


It gives me pleasure to break into what with many of you is your vacation 
period with a piece of good and great news—the announcement of the generous, 
combined subscription of the Laura Spelman Rockefeller Foundation and of Mr. 
John D. Rockefeller, Jr., of one million dollars toward the Accrued Liability 
Fund of the Young Men’s Christian Association Retirement Fund. You will 
agree with me that this is an occasion for profound gratitude to God as well as 
a ground for renewed heartfelt appreciation of the most generous cooperation 
of the donors. 


It has been suggested that I place in your hands copies of the communications 
between Mr. Rockefeller and myself. This I gladly do with the request that 
they be not reprinted. 


This noble and munificent conditional gift should serve to lift the faith and 
inspire the purpose and sacrificial effort of all of us on behalf of this undertaking 
which, if carried to a successful issue, will do more than any other one thing to 
strengthen the leadership of our Movement. Owing to prevailing economic con- 
ditions it will be most difficult to ensure this much desired and indispensable 
result. First and last the convincing advocacy, the active influence, and the 
personal sacrifice of each lay and each secretarial leader of the Brotherhood will 
be needed if we are to win out. The Trustees of the Retirement Fund and the 
special committee of employed officers to be appointed by the Trustees will soon 
indicate best plans of cooperation. 


Sincerely yours, 
John R. Mott. 


13 


I. FIRST LETTER FROM MR. JOHN R. MOTT TO 
MR. JOHN D. ROCKEFELLER, JR. 


347 Madison Avenue, New York City. 


July 8, 1921. 
Dear Mr. Rockefeller: 


I appreciated more deeply than I could express to you the opportunity you 
kindly gave me this morning of presenting the claims of the Y. M. C. A. Retire- 
ment Fund Plan, and the careful and sympathetic consideration which you gave 
to my statement. In accordance with my promise, I have had a typewritten copy 
made of the notes in my own hand, which I read to you, and am sending it with 


this letter together with the pieces of printed matter which you also wished me 
to send. 


As I told you, the International Committee, practically all of the State Commit- 
tees and the Boards of Directors of the leading Associations to the number of 
approximately 500, having on their payroll 3,280 secretaries, have officially approved 
the plan and promised to participate by making their proper annual payments on 
behalf of all their staff. Moreover, 3,649 of the secretaries (out of 5,572) have 
agreed to go into the plan and meet their annual payments. Thus we already 
have assured the participation both of a larger number of secretaries and of a 
larger number of supervisory boards and committees than the actuary indicated 
as necessary. 


The one thing now required to put the plan into effect is to secure an Accrued 
Liability Fund of $4,000,000. This will be a difficult undertaking owing to pre- 
vailing conditions, but the very difficulty of the times in which we find ourselves 
accentuates the importance of putting the plan into effect as a stabilizing, con- 
serving, and anchoring power. 


As I pointed out to you, we stand in need of an initial subscription which 
will serve as a stimulus and contagious influence. I would renew the expression 
of hope, therefore, that you and your father might be able to arrange in some 
way to provide at least $1,000,000 toward the $4,000,000 required. If you could 
put such a lever in our hands and grant us until the end of the year 1922 to 
secure the balance in cash or reliable subscriptions, all subscriptions to be payable 
within a period of three or four years, I believe that with hard work the desired 
success could be achieved. For reasons which you will appreciate, it will be a 
very great help to me to know your decision as soon as practicable, and, if 
possible, before your sailing. 


This letter is written in the name of the Board of Trustees of the Young 
Men’s Christian Association Retirement Fund of which I am a member. On 
May 2nd Governor Miller of the State of New York approved the Act incor- 
porating the Y. M. C. A. Retirement Fund. 


I noted your reference, as you were leaving, to the fact that this is your 
father’s birthday. I venture to convey through you to him my most hearty con- 
gratulations and the prayerful wish that God may spare you and him to collaborate 


14 


“arn to 


for many years in instituting and furthering your large and unselfish plans in 4: 
interest of His Kingdom. 


With renewed expression of gratitude to both of you, 
Very sincerely yours, 
John R. Mott. 
Mr. John D. Rockefeller, Jr., 
26 Broadway, 
New York City. 


II. CONSIDERATIONS SUGGESTING THE IMPORTANCE OF THE 
EARLY ESTABLISHMENT OF THE YOUNG MEN’S CHRISTIAN 
ASSOCIATION RETIREMENT FUND PLAN 


(Submitted by Mr. John R. Mott to Mr. John D. Rockefeller, Jr., on July 8, 1921) 


1. It will hold many effective secretaries who otherwise will be obliged to 
engage in some gainful occupation in order to make reasonable provision for 
themselves and for their families. We cannot afford to lose from this Movement 
any of its strong leaders. 


2. It will tend to lengthen the term of service of Association secretaries with 
all that this would make possible in increased output resulting from larger 
experience, multiplied contacts, and increased prestige. The Association has 
suffered more from frequent changes in its trained leadership than from any 
other cause. This is not theory. In the ten year period 1911-1920 the average 
turnover was twenty-three per cent. This number included many with from ten 
to twenty-five years’ experience. It is becoming more and more necessary that 
the Association have leaders of thorough training, long experience, and mature 
judgment in the executive leadership and in the highly specialized parts of the 
work. 


3. It will augment the spirit and the creative power of the executive forces 
of the Association. How? (1) Through the greatly increased efficiency which 
comes from freeing the mind of financial worries, of restlessness, and of fear, 
anxiety, and uncertainty regarding the future. (2) Through enabling a man to 
concentrate all his attention and energy on the great constructive and life-giving 
tasks. There is very real need of thus stabilizing or steadying the leadership of 
the Association. 


4. It will help to attract to the Association service many able men—young men 
and middle aged men who are so much needed to lead the Movement into larger 
things. There are today many competing calls from chambers of commerce, welfare 
societies, fraternal organizations, and above all from business pursuits. These 
more remunerative callings exert a great pressure. The Association work is so 
vital and so commanding that young men are willing to forego opportunities for 
material gain, provided they are assured that in later years they will not be 
dependent on the community. Moreover, even if a man is ready to face penury 
for himself he is not willing to contemplate this for his family. 


15 


4 tate the superseding by men of unspent energies of workers 

because of physical and other limitations, but who, by holding 

-elopment and progress of the Association. Association Boards 

id be more willing to avail themselves for a few years of men 

f ripe experience, knowing that they would not become perma- 

with their support. More important still, however, it would 

secretaryship in the hands of young men. The Young Men’s 

Christian nssvvition is essentially a young men’s Movement. While, as it grows 

in size, wealth, complexity, and responsibility it needs as never before the judg- 

ment, poise, and perspective which come with years of experience, it is equally 

true that to understand, touch, and lead young men and bgys we must multiply 

greatly the number of secretarial leaders with the initiative, daring, vitality, and 
contagious enthusiasm of men of youth. 


a 


6. The tremendous importance of the Young Men’s Christian Association as 
a vital factor in the educational, social, civic, and religious life of America and 
of the other lands which it is serving, demands that everything possible be done 
to strengthen and perpetuate its influence. What could be more important than 
influemcing the ideals, character, and efficiency of the young men and boys of a 
nation? 


7. It will safeguard the investments in the Young Men’s Christian Association. 
Already over one hundred and twenty million dollars have been invested in Asso- 
ciation buildings in this country alone. The current expense budgets of the 
Associations and of their supervisory committees actually aggregate tens of mil- 
lions of dollars. Moreover, hundreds of millions will be invested during the 
coming decades where tens of millions have been invested in recent decades. 
In secular enterprises such great property interests would be in the care of men 
with large compensation. The least which should be done in the case of the 
Association is to assure its executive officers of wise and adequate old age and 
disability provision. Every argument and consideration which has influenced men 
to give so generously toward Association building campaigns and endowments, 
applies with added force to the creation of this fund which is designed to safe- 
guard and make more highly productive all the other investments in the 
Association. 


8. The putting into effect of the proposed plan is the just and honorable thing 
to do. Who have made the North American Association Movement what it is 
and given it its unique place among the unselfish forces of this continent and 
throughout the world? Who rallied its membership now numbering one million 
young men and boys? Who built up its vast property interests? Who evolved 
its successful methods and agencies? Who have led its successful campaigns for 
the physical, mental, social, and religious betterment of the young manhood and 
boyhood of the nations? Who have widened its opportunity from year to year? 
In the first place the voluntary lay forces; and in the second place the five thousand 
and more secretaries who, without thought of reward, have in so many cases 
worn themselves out and poured their vitality into the serving of the young men 
of their generation. It is right and proper, therefore, that adequate provision 
be made for them in that approaching period when they will cease to be produc- 
tive. We call these men to the Association and hold them in its service during 


16 


the most productive years of their life until it is too late for them to turn to 
other pursuits for a livelihood. The basis of this undertaking is an effort to do 
full justice. It is not a work of charity and donors will not so interpret it. The 
payments which will be made to the retiring secretaries will really be instalments 
on deferred salary and not pensions either morally or technically considered. 


9. It is characteristic of our modern civilization, especially of the last half 
century, to make such provision as is called for by the proposed plan. The most 
progressive governments have recognized the wisdom and justice of this course 
and have acted accordingly with reference to their servants. The American 
Army and Navy have done likewise. This is true of the most forward-looking 
and successful industrial corporations. Our most prominent banks have followed 
in the same way. In connection with the teaching profession in nearly every 
important nation the same principle has been accepted and applied. Nearly every 
Christian denomination in America now makes similar provision although the 
plans in the case of some of them are totally inadequate and unscientific. Here 
is an organization, the Young Men’s Christian Association, three-quarters of a 
century old which has not yet made this much needed and just provision! 


Ill. EXTRACT OF SECOND LETTER OF MR. JOHN R. MOTT TO 
MR. JOHN D. ROCKEFELLER, JR. 


Entrelac P. O., Province of Quebec, Canada. 
July 19, 1921. 
Dear Mr. Rockefeller: 


Reverting to the Retirement Fund, I feel sure you will not misunderstand me 
in expressing the hope that, before you start for the Orient, you may find it 
possible to make the conditional offer which I suggested and which will, as I said 
in my recent letter, serve as a lever and thus enable us to launch the special effort 
to secure the Accrued Liability Fund with some prospect of success, even in this 
difficult time. In my other letter I failed to give reasons why there is in the 
situation an element of real urgency. 


1. We have spent several years in well directed study, planning, and agitation 
within the Association Brotherhood. Much further delay in putting the plan into 
operation will necessitate a new study and the idea will then have to be sold again 
to the Associations. 


2. We have begun to mark time because we have taken every necessary step 
in the program right up to the final one—the raising of the Accrued Liability 
Fund. The three steps taken have been: (a) Preparation of the plan; (b) 
Securing the participation of the employed officers or secretaries; (c) Securing the 
participation of the boards or committees of local, state, and international bodies. 

3. The interest and expectations of the Associations—their boards, committees, 
and secretaries—are now keen. It would be unfortunate to lose the advantage or 
momentum thus afforded. 


17 


4. There is some danger that certain large Associations and groups may, 
because of too great delay, establish retirement projects of their own, to the 
permanent weakening of the international plan. In a word, it is the united judg- 
ment of all the leaders who have given much thought to the matter that delay 
will seriously retard and imperil the project. 


You and your father have made many truly notable gifts to the Association but 
I know of none which has been calculated to affect so helpfully the morale, the 
efficiency, the stability, the very life of the entire Movement for the present 
and the future. 


Very sincerely yours, 
John R. Mott. 
Mr. John D. Rockefeller, Jr., 
26 Broadway, New York. 


IV. REPLY OF MR. JOHN D. ROCKEFELLER, JR. 


26 Broadway, New York City, 
August 11, 1921. 
Dear Dr. Mott: 


By means of the conference with you and by your letter of July 8th, we are 
informed that the pension system known as the Young Men’s Christian Associa- 
tion’s Retirement Fund Plan has been carefully and scientifically devised and has 
received the approval of the International and State Committees and the Boards 
of Directors of the leading local Associations, also that some 3,649 secretaries 
have agreed to support it. We also understand that in order to put this plan into 
effect, an Accrued Liability Fund of $4,000,000 must be raised. 


In response, therefore, to your request, authorized by the Board of Trustees of 
this Fund, I am stating on behalf of the directors of the Laura Spelman Rocke- 
feller Memorial that, provided the entire amount necessary for the Fund is pledged 
by December 31, 1922, the Memorial will pledge the sum of $750,000. Under the 
same condition, I will pledge the sum of $250,000, making a total of $1,000,000 
toward the $4,000,000 to be secured. 


After January 1, 1922, payments on these pledges will be made pro rata with 
the payments of other subscribers to the Fund, with the understanding that any 
portion of the pledges not called for on or before January 1, 1926, shall lapse. 

We are happy to join with others in this laudable undertaking for the speedy 
accomplishment of which you have my father’s and my own best wishes. 


Sincerely yours, 


John D. Rockefeller, Jr. 
Dr. John R. Mott, 
347 Madison Avenue, 
New York City. 


18 


V. TELEGRAM OF MR. JOHN R. MOTT 


Montreal, August 17, 1921. 
John D. Rockefeller, Jr., 
Passenger on Empress of Asia, 
Sailing August 18, 
Victoria, 
British Columbia. 


Just received your letter of August eleventh reporting most generous subscrip- 
tion Laura Spelman Rockefeller Memorial and yourself toward Retirement Fund. 
Desire express to you on behalf of Association Brotherhood deepest gratitude. 
Report of these splendid gifts will be received by entire Association Movement 
with keenest appreciation and should make possible success of plan thus exerting 
profound and permanent influence on Association work throughout world by pro- 
moting stability and higher efficiency of its leadership. Wish you and your family 
Godspeed on your present important mission. 


John R. Mott. 


EXEIBETC 


THE $4,000,000 AccruED LIABILITY CANVASS 


There will later be sent to all contributors to the Fund a final bulletin that will 
show in detail the geographic distribution of the pledges and gifts to this account. 


As we go to press, November 6th, at noon, the contributions may be briefly sum- 
marized as follows: 


Pledges approved as satisfactory by Auditing Committee............ $3,893,651.15 
er ledges’ oir Nandca Walling AuCitgess erences oes <6 SW nen <b vlcte Ses 37,600.00 
Piedsessonanandutregulary as t0 toning, ered bets. & fee epee s be ria hs 16,700.00 


Pledges reported to National Canvass Committee but not received at 
Retinem ents Ltind 9 © ticemae Meee erate er cree ait camera tisioteres oe cola a ttre 31,945.00 


A ape RS tg oe ne bry Vee gr en PONE DRT PPL ON Sea ne aa $3,979,896.15 


It is confidently expected that by the time this report is presented to the 
International Convention, that pledges sufficient to more than complete the $4,000,000 
Fund will be provided by Associations and individuals that are considering making 
subscriptions. 


In addition to this sum the War Work Trustees made a special grant of 
$70,279 to cover the period that employed officers served in military service for 
Canada or the United States during the World War. This time had not been 
entered into the original actuarial calculations for prior Association service. 
The War Work Trustees made this grant as a matter of patriotism and justice 
to the young secretaries who offered their lives for the defence of democracy and 
civilization. 


The form of pledge used in the campaign is as follows. Practically all pledges 
made have followed this legal agreement or are in such form as to have the 
approval of the Auditing Committee. 


19 





To the 


BOARD OF TRUSTEES OF THE YOUNG MEN’S CHRISTIAN 
ASSOCIATION RETIREMENT FUND 


347 Madison Avenue, New York City 


In consideration of a conditional pledge of $1,000,000 from the Laura 
Spelman Rockefeller Memorial and John D. Rockefeller, Jr., to the 
Accrued Liability Account of the Young Men’s Christian Association Retire- 
ment Fund, with other gifts and pledges toward the $4,000,000 needed and 
your agreement to use your utmost efforts (including necessary expense) 
to secure the pledges necessary to comply with the conditions of the above 
mentioned Rockefeller pledges, and on the condition that the entire sum of 
$4,000,000 is subscribd on or before December 31, 1922, I agree to pay to 
the Treasurer of said Fund the sum of 


OK0 2.2 6 006 e 6 0 U0 80 6610 6:6: 60 016 6 6 0 656. 6/169. 0.8 9.6 6 Os 6. © 6 6 0166.0 6 6.6.0 6 B)e © 66 6 0.6 6.0 Cbs 8 88 ee e106 


dollars in installments of 25% due on or before January 1, 1923; January 1, 
19243o} anuary 1, 1925> “July, i.) 19255 or. wae. coi ieee eae ae ee 
In order to insure the full payment of the conditional Rockefeller pledges, 
I further agree that the entire amount of my subscription will be paid on 
or before December 31, 1925. 


Checks may be made payable to James H. Post, Treasurer. 





EXHIBIT D 


List oF SECRETARIES APPROVED FOR RETIREMENT BENEFITS BY THE 
BoarD OF TRUSTEES TO OCTOBER 27, 1922 


Armstronc, R. M., Honorary State Secretary, State Committee, Massachusetts 
and Rhode Island, Boston, Mass. October 1. 

Atwoop, FRANK C., Financial Secretary, Y. M. C. A., Glens Falls, N. Y. July 1. 

BaILEY, JAMES PRENTISS, Secretary, International Committee, 347 Madison Ave- 
nue, New York. August 1. 

BALLANTINE, Wo. G., Professor, Springfield College, Springfield, Mass. July 1. 

Barnes, LuMAN W., Membership Secretary, Y. M. C. A., Poughkeepsie, N. Y. 
October 1. 

Bates, E. T., Advisory State Secretary, State Committee, Connecticut, 173 Orange 
Street, New Haven, Conn. July 1. 

Bunce, D. A., Consulting General Secretary, Y. M. C. A., Montreal, Quebec. 
August 1. 

BuLLen, Henry S., Assistant Educational Secretary, Central Department Y. M. 
C. A., Chicago, Illinois. August 15. 


20 


Cotuns, Z. C., Army and Navy Division International Committee, New York 
City. October 1. 

CopeLAND, C. M., Associate General Secretary, National Council Y. M. C. A. of 
Canada, Toronto, Ontario. August 1. 

Cozzens, Henry A., General Secretary, Y. M. C. A., Newark, N. J. November 1. 

Focc, Epwarp S., General Secretary, Y. M. C. A., Covington, Ky. July 1. 

Gates, C. L., Secretary, International Committee, New York City. October 1. 

GAYLoRD, FRANKLIN A., Secretary, International Committee, New York City. 
October 1. 

GLovER, JOHN, Secretary, International Committee, New York City. October 1. 


GoopMAN, F. S., Secretary, International Committee, New York City. October 1. 

Gunn, Epcar Joun, Financial Secretary, Y. M. C. A., Aurora, Illinois. August 1. 

Honce, GeorceE B., Secretary, International Committee, New York City. October 1. 

Howpren, W. E. (disability), Secretary, Foreign Division, International Com- 
mittee, New York City. July 1. 

Jackson, J. P., Office Secretary, State Committee, Texas, Dallas, Texas. 
August 1. 

Jounson, T. T., Insurance Secretary, Overseas Division, International Com- 
mittee, New York. October 1. 

KeEtTLe, Epwin, General Secretary, Y. M. C. A., Danville, Virginia. September 15. 

Lioyp, W. A., General Secretary, Y. M. C. A., Jacksonville, Fla. October 1. 


McRag, Wo. D. (disability), State County Work Secretary, State Committee, 
Concord, N. H. July 1. 

McWutiam, G. A., Consulting Secretary, Y. M. C. A., Moncton, N. B. 
September 1. 

Mitier, Jacos S., Assistant Secretary, Y. M. C. A., Canton, Ohio. August 15. 

Oser, C. K., Secretary, International Committee, New York City. October 1. 

OBER, FRANK W., Secretary, International Committee, New York City. October 1. 

Peck, E. W., State Secretary, State Committee, Minneapolis, Minn. July 1. 

Perkins, Wm. T., Financial Secretary, State Committee New York, New York 
City. August 1. 

Roperts, Peter, Secretary, International Committee, New York City. October 1. 

SAMPLE, GeEorGE C. K., Secretary Emeritus, Pennsylvania Railroad Y. M. C. A., 
Columbia, Pa. October 1. 

SANForD, GeorcE A., Army Secretary, Y. M. C. A., New York City. July 1. 

Stratton, ARTHUR T., Field Secretary, State Committee, South Carolina, 
Columbia, S. C. July 1. 

Tuomas, Rosert S., Assistant Secretary, Baltimore and Ohio Railroad Y. M. 
C. A., Baltimore, Md. August 1. 

THORBURN, THOMAS, Assistant Secretary, Seamen’s Branch Y. M. C. A., Brooklyn, 
N. Y. August 1. 

Wacconer, W. A., General Secretary Emeritus, Railroad Y. M. C. A., Atlanta, 
Ga. July 1. 

WarBurToNn, GeEorcE A., General Secretary, Y. M. C. A., Toronto, Ontario. July 1. 

Witcox, CHartes W., Office Secretary, State Committee, Washington, Seattle, 
Wash. July 1. 

Wuttams, H. O., Secretary, International Committee, New York City. July 1. 


21 


EXHIBIT E 


List oF SECURITIES HELD By BOARD OF TRUSTEES OF THE 
Y. M. C. A. RETIREMENT Funp, INc. 


THE YOUNG MEN’S CHRISTIAN ASSOCIATION 
RETIREMENT FUND, INCORPORATED 


SCHEDULE, “2” 


Bonps Ownep Ocroser 31, 1922 


Par 

NAME OF SECURITY value 
Adirondack Power & Light Corp. Ist & ref. mtg. 

1950168 + .ccteale sted s ale tere cforts caters col civiettreveraveiste $10,000 


C., B. & Q. RR. Co. Neb. ext. mtg. 1927 4s.. 10,000 
Cleveland Union Term. Co. 1st mtg. skg. fd., 

Series: CAI 1972 Stisiitiad soca e demain sere 10,000 
Cuyahoga Tel. Co: ist’ mtgn 1941 Sse, nm asa 10,000 
Detroit Edison Co. Ist ref., Series B, 1940 6s.. 20,000 
Detroit Term. & Tunnel Co. Ist mtg. 1961 4%s 10,000 


Dominion of Canada war loan, 1934 5%s........ 8,000 
Duquesne Light Co. 1st mtg. & coll. trust, Series 

AS 1949 06S ca cAts ics eratere arshtonepoeeeetoae wlaieaees anette 30,000 
Elec. Securities Corp. coll. trust 1952 5s........ 10,000 
B. F. Goodrich Co. 1st mtg. 1947 6W%4s........ 20,000 
Great Northern Ry. Co. gen. mtg., Series A, 

1936.5 (75) faye cuacecerhsvers eke adie gst ieyeCaulapa elaittars cots Jae 10,000 
Indianapolis Gas Co. 1st cons. mtg. 1952 5s...... 20,000 
Inland Empire Paper Co. 1st mtg. 1926 6s........ 500 


Int. Paper Co. Ist & ref., Series B, 1947 5s.. 10,000 
Kansas City Power & Light Co. Ist mtg. 1952 5s 20,000 
L. & N. RR. Co. temp. 1st & ref. mtg., Series A, 


ZOOS" SARS are o 3 o's eres ciate etieus at tee cree ee ret airs 10,000 
Miss. River Power Co. 1st mtg. 1951 5s........ 10,000 
Mo. Pacific RR. Co. equip. trust 1934 63........ 10,000 
Neb. Power Co. 1st mtg., Series A, 1949 5s...... 10,000 
N. Y. C. RR. Co. cons., Series A, 1998 4s...... 10,000 
N. Y. C. & Hudson River RR. Co. ref. & imp. 

AMtOsse SCTIES A, 201 Seay Sais cinnteien coerce ee 10,000 
N. Y. Edison Co. 1st lien ref., Series A, 1941 644s 10,000 
N. Y. Tel. Co. 1st & gen. skg. fd. 1939 4%s.... 10,000 
Niagara Falls Power Co. 1st mtg. 1932 5s........ 10,000 


Northern Pacific RR. Co. ref. & imp. mtg. 2047 6s 20,000 
Ore.-Short Line RR. Co. cons. 1st mtg. 1946 5s.. 10,000 
Ore.-Wash. RR. & Nav. Co. Ist ref. mtg., Series A, 


NOG Ue 48 esa, di cca in eth acersaveus eis, aN ots, syakeietctenye acieys 10,000 
Pacific Gas & Elec. Co. gen. & ref. 1942 5s.... 20,000 
Pacific Tel. & Teleg. Co. 1st mtg. & Coll. trust 

1937 B SOME cate da ticeciele s cis sires a estetsieneys onto 10,000 
Penna, RR Cowgen. poeries 5.01968 158icieiss cris 10,000 
Public Service Co. of No. Ill., Series A, 1962 5%4s 10,000 
Republic Iron & Steel Co. skg. fd. 1940 5s...... 10,000 


So. Calif. Edison Co. gen. & ref. mtg. 1944 5s.. 20,000 
So. Pacific Co.-San Fran. Term. 1st mtg. 1950 4s 30,000 
U.S. Rubber Co. Ist & ref., Series A, 1947 5s.. 10,000 


Us. S-7 Steels Corp eskesctd.) 1963058 sce tere eres ae 10,000 
USSs Tel. Con ist ‘mtr 194.00 5S nee treet e 10,000 
$468,500 


22 


Market 
value 


$10,100.00 
9,637.50 


10,325.00 
10,400.00 
20,450.00 
8,912.50 
8,000.00 


30,600.00 
9,400.00 
20,200.00 


11,012.50 
18,000.00 
500.00 
8,800.00 
18,650.00 


10,362.50 
9,500.00 
10,550.00 
9,300.00 
8,100.00 


8,675.00 
10,800.00 
9,550.00 
9,800.00 
21,600.00 
10,200.00 


8,075.00 
18,300.00 


9,650.00 
9,975.00 
9,775.00 
9,350.00 
19,000.00 
24,600.00 
8,750.00 
10,250.00 
10,325.00 


$451,475.00 


Cost 


$9,837.50 
9,527.50 


10,575.00 
10,500.00 
20,680.00 
8,750.00 
8,060.00 


30,890.00 
9,100.00 
20,400.00 


10,762.50 
17,787.50 
500.00 
8,452.50 
18,650.00 


10,243.75 
9,235.00 
10,170.49 
8,950.00 
7,952.50 


8,662.50 
11,012.50 
9,065.00 
9,650.00 
21,777.50 
9,802.50 


7,937.50 
18,216.25 


9,460.00 
9,615.00 
9,775.00 
9,415.00 
19,000.00 
24,487.50 
8,872.50 
10,087.50 
10,500.00 


$448,150.49 


Amortized 
book 
value 


$9,843.60 
9,588.52 


10,569.28 
10,483.80 
20,671.04 
8,762.86 
8,060.00 


30,882.00 
9,121.54 
20,399.60 


10,725.12 
17,823.36 
500.00 
8,499.06 
18,650.34 


10,236.16 
9,048.00 
10,160.65 
8,967.26 
7,977.85 


8,676.40 
10,980.84 
9,103.60 
9,673.61 
21,755.96 
9,810.56 


7,979.00 
18,263.04 


8,486.76 
9,621.45 
9,776.75 
9,435.70 
19,000.40 
24,540.49 
8,907.50 
10,084.49 
10,483.80 


$448,550.39 


(EXHIBIT “A’’) 


EXHIBIT F 


.THE YOUNG MEN’S CHRISTIAN ASSOCIATION 
RETIREMENT FUND, INCORPORATED 
SCHEDULE. “1” 


STATEMENT oF CaSH RECEIPTS AND DISBURSEMENTS 
Aprit 1, 1916, to Ocroser 31, 1922 


RECEIPTS 
Payments on “Initial Expense” Pledges”.. $ 34,390.00 
Payments on Accrued Liability Pledges 
National War Work Council........ $200,000.00 
Greema iliances UundsSema neces sent 4,927.83 
[ANONVINOUS EESsc hotest oe ec ee 150.00 
Employed sY.7 Mc. C. A. Officersi...c. 45,117.99 
Laymen and Local Associations...... 102,545.41 352,741.23 
Bond@interestapmiacre ie ted .ie ree eects 10,810.61 
Less Accrued on Purchase of Bonds.... 5,368.83 5,441.78 
Enterestronm bane balances ee eeeriin eas 1,203.47 
Interest on Payments to Apply on Em- 
ployed Y. M. C. A. Officers’ Pledges... AS 
Payments by Participants 
SECRCtALICS Mein ac een eee orn 97,130.01 
IASSOCIAtIONS Metts cree eee een cence 87 267.94 184,397.95 
Loan for Advance Annuity Payments.... 5,000.00 
pundrytitemsunasuspense) oan eo 882.65 


PLOtat mR eCEIDtSubih es, sais ete nee’ 


DISBURSEMENTS 
Promotion and Administration Expenses............ $ 108,231.22 
IGMRREE GIN ALOE eisig aan sith ore a ncaereie.c Garren cece icra ares 1,518.59 
Hexchang em oie CDOSItS:.. mere nati sn cs ete neta etice sions 28.83 
Checks Returned “Insufficient Funds”...............; 125.19 
Total Expense Disbursements.............. 109,903.83 
ITivestinenrathme bONUS ATE eee eee tee 448,150.49 
Rota isbursementsme oes ee eee 


Cash Balance October 31, 1922 (Exhibit “A’”) 


23 


$ 34,343.00 


929.65 


$ 584,109.91 


558,054.32 


$ 26,055.59 


THE YOUNG MEN’S CHRISTIAN ASSOCIATION 
RETIREMENT FUND, INCORPORATED 
SCHEDULE “3” 


STATEMENT OF THE ASSOCIATION RESERVE FUND 
Octoser 31, 1922 


CREDITS 
Interest on Bohds,Owneds.¢) wb ccmeniemese s epee $ 11,986.55 
Amortization on Bonds .Ownedsc... ede. smodte ven te 399.90 
Laterest> on Banki balances 2... o scares ie eee nto s 1,007.64 
Intérest—-Other <,. Fis Westen Oe 5 ene Ree a ele 644.13 
GiftsesAccruedis Liability i. sus ocusoaurs tse seth ea: 2 $3,893,651.15 
Less Reserve for Pledges of Secretaries who have 
lett :Y.-. M.-C: Aa Work toca <eanieeen oo aes ee ee 21,746.50  3,871,904.65 
Payments by Participating Associations............... 127,664.21 
Total Credits wise: ee ete ee eee eee 4,013,607.08 
DEBITS 
Transfer of Expense Loading Included in Association 
Payments (itees ous oon ste Maes naa tee eee ek ee eure 25,532.84 
Balance, October 31, 1922 (Exhibit “A”).. $3,988,074.24 


SCHEDULE 4" 
ADMINISTRATION INCOME AND EXPENSE 
Four Montus ENpep Ocrtoser 31, 1922 


INCOME 
GATES) Sola L etic noid to ot ed eM esaretatra Rioae ai tet 5 wegen ean SE tet mer ee $ 115.00 
Transfer of Loading from The Association Reserve 
| hi by ohs Mpa RRR Ii TM ASR ea es Ds ot ae od 25,532.84 
Lotal: Inconten toe veins tee va Seen ene oe eee $ 25,647.84 
EXPENSE 
Salaries 
Administration and Supervision.........)...cc..s8%: $ 2,441.64 
Ofice and 2 Clerical eek eh, eee ee ene se caeee 5,637.11 
‘TLotal’Salariestcew oh eee ee 8,078.75 
Actuarial. Fees) <i. cits.ccia. sou dnp ee ae eee 1,625.68 
Accountants sHees 72 teeta ee ene eee eee 1,305.00 
Offices Rent 22 eee ee oe ee en ernie 360.00 
Service of International Committee Business Bureau.. 340.00 
Telephone: andgleleoraphiscs.eusecie coe oe ee 206.46 
Advertising.and, Promotion. c.n: oc. bi semen aces 574.58 
Stationery tand@ibrinting seer r.es on sus aap en ante 2,016.67 
Postage er AeMeene See Me larel owiehe, e Slevsinete oh te ob matte Mteeteieias 464.33 
Interest; Discount, and Exchange. gh.ia,..skieece ses -s0 1,421.27 
Miscellaneous ‘s5;.30 ceo. cous Re eee ce On melee ee Eee oaee 85.70 
Total “Expense. .2cta.< cee en ok Gt de ee 16,478.44 
Netiincome; (Exhibite A”)... cssweeeense ee $ 9,169.40 


THE YOUNG MEN’S CHRISTIAN ASSOCIATION 
RETIREMENT FUND, INCORPORATED 


EXHIBIT “A” 


STATEMENT OF ASSETS AND LIABILITIES 
Octoser 31, 1922 


ASSETS 
Gastt.in Banks (Schedule. “1”)...2.... «2. $ 26,055.59 
Payments Due from Participants 
SIECEOTATIOS tcc se a Toe eke aie a's oan Ze $ 39,374.59 


ASSOCIATIONS! erode sie oe aes ae 40,373.44 79,748.03 


Pledges Receivable 
Towards Initial Expense (Past Due)... $ 884.85 
Less Reserve for Pledges of Secre- 
taries who have left Y. M. C. A. . 
VWOOLK ot co thasct opt see tak Macias ¢ 125.00 759.85 


Towards Accrued Liability 
(Payable by December 31, 1925) 
Employed Y. M. C. A. Secretaries.. 301,794.08 
Less Reserve for Pledges of Secre- 
taries who have left Y. M. C. A. 


WiiGhald  éhisy Soi Maa sromneaeae anh, 21,746.50 
280,047.58 
Local Y. M. C. A.’s, Other Organiza- 
OnSse andere avinien. si pene eee 3,239,115.84  3,519,163.42  3,519,923.27 
Interest Receivable 
Matured (on Bonds Owned)....’....... 900.00 
Accrued (on Bonds Owned)........... 5,644.77 6,544.77 
Bonds Owned—Amortized Value 
ea ciana Bl i? S60 ee ay ea A ae 448 550.39 
Office Furniture and Equipment.......... 2,462.95 
SURPRISE. oye aSoedcenan ees air ete mises 152.98 





motaleAssets erence ne sere $4,083,437.98 


Note—Pledges towards the Accrued Liability are contingent on a total of 
$4,000,000 being pledged by December 31, 1922. 


Pledges accepted by the Auditing Committee amounted to $3,893,651.15 at 
October 31, 1922. 


25 


THE YOUNG MEN’S CHRISTIAN ASSOCIATION 
RETIREMENT FUND, INCORPORATED 


EXHIBIT “A” 


STATEMENT OF ASSETS AND LIABILITIES 
OcroBEerR 31, 1922 


LIABILITIES AND FUNDS 


Loans Payables) cs. . o-aa bee ase sees $ 5,000.00 
Accoufits *Payaple) jwoveesueaecietur cee. 523.50 
Total’ Haabiitiess oo, 222 ees ae $,523.50 
Secretaries Savings Reserve Fund........ 137,241.77 
Association Reserve Fund (Schedule “3’) 3,988,074.24 
General Surplus 
Dehciteiulynl922 oko) ace ee eens $ 57,360.98 
Less 
Expense Refunds. o-vtinnt sc. ess. $ 790.05 
Net Income Four Months ended 
October 31, 1922 (Schedule “4’) 9,169.40 9,959.45 
Net Deficit October 31, 1922... 47 401,53 
$4,083,437.98 


We have audited the books and records of The Young Men’s Christian Associa- 
tion Retirement Fund, Incorporated. Except that no reserve has been provided 
for uncollectible “Payments Due from Participants” and “Pledges” (other than 
those of Secretaries who have left Y. M. C. A. work), we hereby certify that the 
above statement correctly sets forth the financial condition of the Fund at October . 
Sl nlze, 


HURDMAN anv CRANSTON, Certified Public Accountants, 
350 Madison Avenue, New York City. 


26 


EXHIBIT G 


CONSTITUTION AND By-LAWS 
CONSTITUTION 


ARTICLE I 


NAME AND OBJECT 

Section I. The name of this organization shall be the Young Men’s Christian 
Association Retirement Fund. 

Section II. The object of this Fund shall be to provide certain benefits to 
secretaries of the Young Men’s Christian Association who retire from active ser- 
vice and are eligible to the benefits of the Fund under the conditions described in 
ths By-laws. 


ARSE Gee Li 
MANAGEMENT 


Section IJ. The management of this Fund shall be vested in a Board of Trustees 
of nine men eligible to active membership in the Young Men’s Christian Associa- 
tion and not more than four of whom are or have been employed officers. They 
shall elect their own officers. 

Section II. Following the International Convention of 1922 three members shall 
be elected in the manner hereinafter provided to replace the two appointed by the 
International Committee whose term of office expires at that time. The procedure 
shall be similar following the Conventions of 1925 and 1928. 

Section III. At the time of or immediately following an International Con- 
vention three trustees shall be elected for a period of nine years by vote of the 
participating Associations and participating employed officers on the basis of one 
vote by each participating employed officer and one vote by each participating 
Association for each participating employed officer whom it employs. 

Section IV. The Board of Trustees shall have and exercise all the powers 
necessary to accumulate, manage, and dispose of the funds entrusted to it not 
inconsistent with the laws under which the Fund has been incorporated or any 
action of the International Convention. 

Section V. The Board of Trustees is empowered to make By-laws for the 
operating of the Fund in accord with the Retirement Fund Plan as approved by 
the International Convention of 1919 and not inconsistent with this Constitution. 

Secrion VI. The Board of Trustees is empowered to fill vacancies in its 
number by reason of death, inability to serve, or otherwise until the next Inter- 
national Convention. 


ARTICLE TIT 


MEETINGS 
Section I. There shall be an annual meeting of the Board of Trustees at 
which time a report shall be presented by the chairman, secretary, treasurer, and 
standing committees. The same shall be published and sent to all participating 
Associations and participating employed officers. 


Zh 


Section II. Regular meetings of the Board of Trustees shall be held quarterly 
or called by the chairman at such other times as the business of the Board re- 
quires. Five members present shall constitute a quorum. 

Secrion III. A triennial meeting of all participants as provided in Article II, 
Section 3, shall be held for election of three trustees. 


ARTICLE IV 


AMENDMENTS 
This Constitution and accompanying By-laws may be altered or amended by a 
two-thirds vote of those present at any regular meeting of the Board of Trustees 
provided the proposed change had been presented in writing at any previous 
regular meeting. 


BY-LAWS 


DEFINITIONS 

Section I. The following words and phrases used in the constitution and by- 
laws shall have the following meanings unless a different meaning is plainly 
required by the context: 

1. “Retirement Fund” shall mean the Young Men’s Christian Association Re- 
tirement Fund, created for the purpose of paying retirement allowances, as pro- 
vided under the provisions of these by-laws. 

2. “Retirement Fund Board” shall mean the Board of Trustees of the Young 
Men’s Christian Association Retirement Fund as created by laws of the State of 
New York and authorized by the Thirty-ninth International Convention of Young 
Men’s Christian Associations of North America. 

3. “Association” shall mean any Young Men’s Christian Association organiza- 
tion entitled to voting representation in the International Convention and also the 
accredited training agencies and county, state, national, international, and other 
agencies approved by or created by the International Convention. 

4. “Secretary” shall mean any person classified and recorded with the Personnel 
Bureau of the International Committee as a full-time employed officer of an 
Association. 

5. “Participating Association” shall mean any Association which provides 
through payments to the Retirement Fund for Association annuities to any or all 
of its participating secretaries and has been so recorded by the Retirement Fund 
Board. 

6. “Participating Secretary” shall mean any Secretary who elects to make the 
payments required by the Retirement Fund and has been so recorded by the Re- 
tirement Fund Board. 

7. “Beneficiary” shall mean a person in receipt of a retirement allowance or 
other benefit, provided by the Retirement Fund. 

8. “Prior Service” shall mean all service, as a secretary, rendered prior to the 
time the Retirement fund is formally established, which shall be certified in a 
prior service certificate and allowable as provided in Section 7 of these by-laws. 

9. “Subsequent Service” shall mean all service, as a secretary, which shall be 
rendered after the time the Retirement Fund is formally established and before 
the Secretary has attained age sixty and on account of which the Association pay- 
ment to the Retirement Fund shall have been made. 


28 


10. “Association Service’ shall mean all prior service and subsequent service 
as a secretary for which credit at retirement shall be allowable as defined in 
Section 7 of these by-laws. 

11. “Final Salary’ shall mean the average annual regular salary, including 
bonuses which shall be considered as a part of salary, of a participating secretary 
for the ten years of service immediately preceding retirement, except that when a 
participating secretary retires before the completion of ten years of service, final 
salary shall mean his average annual salary including bonuses during his entire 
period of service. 

12. “Accumulated Secretarial Payments” shall mean the total of the amounts 
paid by a participating secretary, together with regular interest thereon, standing 
to his credit in the Secretaries’ Savings Account. 

13. “Regular Interest’ shall mean interest at four percentum per annum com- 
pounded annually. 

14. “Association Annuity’ shall mean payment for life to a beneficiary derived 
from payments by Associations and from other sources except “Accumulated 
Secretarial Payments.” 

15. “Secretary's Annuity’ shall mean payment for life to a beneficiary derived 
from the “Accumulated Secretarial Payments” of a participating secretary. 

16. “Retirement Allowance” shall mean the Association annuity plus the secre- 
tary’s annuity. 

17. “Association Annuity Reserve” shall mean the present value, computed on 
the basis of regular interest and such mortality tables as shall be adopted by the 
Retirement Fund Board, of the future payments to be made on account of any 
Association annuity granted under the provisions of these by-laws. 

18. “Secretary's Annutty Reserve” shall mean the present value, computed on 
the basis of regular interest and such mortality tables as shall be adopted by the 
Retirement Fund Board of the future payments to be made on account of any 
secretary's annuity or benefit granted and based on his accumulated secretarial 
payments. 

19. “Associations Reserve Account’ shall mean the account to which the pay- 
ments of participating Associations are credited as provided in Section 6 of these 
by-laws. 

20. “Secretaries Savings Account” shall mean the account to which the pay- 
ments of participating secretaries are credited as provided in Section 6 of these 
by-laws. 

21. “Annuity Reserve Account” shall mean the account to which retirement 
allowances are charged as provided in Section 6 of these by-laws. 

22. “Expense Account’ shall mean the account to which the cost of administra- 
tion is charged as provided in Section 6 of these by-laws. 


EstTABLISHMENT OF THE RETIREMENT FUND 


Section 2. The Retirement Fund shall be formally established on such date as 
shall be designated by the Retirement Fund Board, and due notice of the same 
shall be published in Association Men. 


PARTICIPANTS IN THE RETIREMENT FUND 
Section 3. Participants in the Retirement Fund shall consist of: 
1.. Associations which have entered into agreement with the Retirement Fund 


29 


Board to have any or all of their Secretaries covered by the provisions of the 
Retirement Fund and which have made all the required payments. 

2. Secretaries who have entered into agreement with the Retirement Fund 
Board and passed the medical or other examinations required by said Board and 
who have made all the required payments. 


ADMINISTRATION OF THE RETIREMENT FUND 


SECTION 4. 


1. The members of the Retirement Fund Board shall serve without compensa- 
tion but may be reimbursed from the expense account for any necessary expendi- 
tures incurred in service on said board. 

2. The Retirement Fund Board shall elect from its membership a chairman 
and a treasurer, and shall appoint a secretary, an actuary, and such medical, 
clerical, and other employes as may be necessary. 

3. The compenstion of all employes of the Retirement Fund Board shall be 
fixed by said Retirement Fund Board. 

4. The Retirement Fund Board shall cause to be kept in convenient form such 
data as shall be necessary for actuarial valuation of the Retirement Fund created 
by the provisions of these by-laws. 

5. The actuary shall make periodic actuarial valuations of the Retirement Fund 
at such intervals as the Retirement Fund Board shall prescribe. He shall from 
time to time recommend for adoption to the Retirement Fund Board the rates of 
payments required to the various accounts by participants and also the mortality 
and other tables for use in maintaining the Retirement Fund in a solvent condition. 

6. The Retirement Fund Board shall keep a record of all its proceedings open 
to inspection by any participant in the Retirement Fund. 


MANAGEMENT OF FUND 


Section 5. 


1. The Retirement Fund Board shall have full power to invest and reinvest all 
money in any of the accounts of the Retirement Fund, subject, however, to such 
limitations and restrictions as are imposed by law upon life insurance companies 
of New York State in the making of investments of their reserve funds, so far 
as the same are applicable. Subject also to like terms, conditions, limitations, and 
restrictions, said Retirement Fund Board shall have full power to purchase, hold, 
sell, assign, transfer, or dispose of any of the securities and investments in which 
any of the funds belonging to the Retirement Fund shall have been invested as 
well as the proceeds of said investments, and of any money belonging to said 
Retirement Fund. For convenience of administration it may designate a Finance 
Committee with authority to perform these functions. 

2. The Retirement Fund Board shall credit to the Associations reserve account 
the interest, dividend, and other earnings from all invested funds. It shall transfer 
from the Associations reserve account to the credit of the secretaries savings 
account and the annuity reserve account regular interest on the balances of these 
respective accounts. 

3. The treasurer of the Retirement Fund Board shall be custodian of all funds 
belonging to the Retirement Fund, and shall be bonded to such amount as the 
Retirement Fund Board shall deem sufficient to safeguard the funds in his custody. 


30 


4. All payments from the Retirement Fund shall be made by the treasurer and 
then only upon voucher or warrant signed by the chairman of the Retirement Fund 
Board and countersigned by the secretary of the board or by their authorized 
deputies. 

5. Except as herein provided, no member and no employe of the Retirement 
Fund Board shall have any interest, direct or indirect, in the gains or profits of 
any investment made by the Retirement Fund Board, nor as such, directly or in- 
directly, shall receive any pay or emolument for his services. No member and 
no employe of said Retirement Fund Board, directly or indirectly, for himself or 
as an agent or partner of others, shall borrow any of its funds or deposits, or in 
any manner use the same except to make such current and necessary payments as 
are authorized by the Retirement Fund Board; nor shall any member or employe 
of said Retirement Fund Board become an endorser or surety or in any manner 
an obligor for moneys loaned by or borrowed of said Retirement Fund Board. 


ACCOUNTS 


Section 6. The assets of the Retirement Fund shall be credited, according to 
the purpose for which they are intended, to one of four accounts; namely, (1) the 
Associations Reserve Account, (2) the Secretaries Savings Account, (3) the 
Annuity Reserve Account, or (4) the Expense Account. 


1. The Associations Reserve Account shall show all payments made by the 
participating associations and all other moneys which are held in reserve to pay 
Association annuities. 


Each participating association shall pay monthly, or at such other intervals as 
agreed upon with the Retirement Fund Board to the treasurer of the Retirement 
Fund Board, on behalf of each participating secretary in its employ, an amount 
equal to such percentum of such participating secretary’s salary including bonus 
as shall be certified by the Retirement Fund Board as necessary to procure for 
him at the time of retirement the Association annuity which would be payable to 
him on account of service after establishment of the Retirement Fund. Subject 
to such changes as shall be necessary under the provisions of Section 4, subdivision 
5 of these by-laws, the rate percentum payment so certified by the Retirement 
Fund Board shall be computed by the actuary to remain constant during the pros- 
pective active service of such participating secretary prior to the age of sixty, 
and shall be based on such mortality and other tables as shall be adopted by the 
Retirement Fund Board. 


In addition to the above payments on behalf of participating secretaries, there 
shall be credited to the Associations reserve account all gifts, donations, legacies, 
or other moneys payable or which shall become payable to the Retirement Fund 
Board for the payment of accrued liabilities or for any other purpose not other- 
wise provided for. Amounts so received shall be used in the payment of the 
Association annuities payable on account of service prior to the establishment of 
the Retirement Fund; but the payment of all such annuities is hereby made 
contingent upon the receipt of amounts sufficient to cover the accrued liabilities 
for such service. 


2. The Secretaries Savings Account shall show the accumulated secretarial 
payments from the salaries of participating secretaries. Each participating secre- 
tary shall pay monthly, or at such other intervals as agreed upon with the Retire- 


31 


ment Fund Board to the treasurer of the Retirement Fund Board, such percentum 
of his salary as shall be computed by the actuary to be sufficient with regular 
interest to provide for him on retirement, at age sixty, a secretary’s annuity equal 
to three-quarters of one percentum (0.75%) of his final salary multiplied by the 
number of years of his service as a participating secretary after the formal estab- 
lishment of the Retirement Fund. 


No participating secretary shall be required to pay at a rate percentum higher 
than the rate percentum at which he was required to begin making payments. 


No participating secretary shall be required to continue to pay to the secretaries 
savings account after he shall have attained the age of sixty years; all payments 
thereafter to said Retirement Fund shall be voluntary. 


3. The Annuity Reserve Account shall show the reserves on annuities payable 
to retired secretaries or their families. Upon the retirement of a secretary there 
shall be transferred to the annuity reserve account (a) from the secretaries 
savings account a credit of the amount of the accumulated secretarial payments 
and (b) from the Associations reserve account a credit of an amount equal to 
the Association annuity reserve. All annuities when paid shall be charged to this 
account. 


Should a beneficiary be afterward restored to active service, a credit for his 
secretary’s annuity reserve shall thereupon be transferred from the annuity re- 
serve account to the secretaries savings account, and a credit for the amount of 
the Association annuity reserve of his Association annuity shall be transferred to 
the Associations reserve account. 


Should the Association annuity of any beneficiary be otherwise reduced or dis- 
continued in accordance with the provision of these by-laws, a credit for the 
amount of his Association annuity reserve or such proportionate part thereof as 
corresponds to the amount of the reduction in his Association annuity shall be 
transferred from the annuity reserve account to the Associations reserve account. 


4. The Expense Account shall show such amounts as are credited to the 
Retirement Fund for the payment of administrative expenses. The accumulated 
secretarial payments of participating secretaries who discontinue payments to the 
secretaries savings account within one year from the time the making of such 
contributions began shall be credited to the expense account by transfer from the 
secretaries savings account. The actuary of the Retirement Fund Board shall add 
to the rates of payments to be made by participating Associations such additional 
rate or amount as shall be sufficient to provide such sums as the Retirement Fund 
Board shall consider necessary to meet the administrative expenses of the Re- 
tirement Fund not otherwise provided. The amount so added shall be known 
as expense loading and shall be credited to the expense account. Any other 
amounts which shall be contributed, for use in establishing or operating the Re- 
tirement Fund, shall be credited to the expense account. 


The salaries of all employes of the Retirement Fund Board and all other ex- 
penses of the retirement system shall be paid by the Retirement Fund and charged 
to the expense account. 


32 


SERVICE ALLOWANCE 


Section 7. Each participating secretary shall file with the Retirement Fund 
Board a detailed statement of all prior service rendered by him. As soon as 
practicable thereafter, the Retirement Fund Board shall verify said statement and 
issue to each participating secretary a certificate as to the aggregate length of his 
prior service. Such certificate shall be final and conclusive as to his prior service 
unless modified by the Retirement Fund Board within one year from the date of 
issuance of a certificate or a modified certificate. ‘The Association service of a 
participating secretary creditable at retirement shall consist of all subsequent 
service continuous to the date of retirement but not beyond age sixty, and if 
such service has been continuous from the date of the establishment of the Re- 
tirement Fund, his Association service shall also include all prior service certified 
in accordance with this section. 


PAYMENTS ON WITHDRAWAL AND RESTORATIONS 
Section 8. 


1. Should a participating secretary, after one year or more of subsequent 
service, terminate his service as a secretary, or desire to discontinue as a par- 
ticipant in the Retirement Fund, he shall be paid on demand (a) the full amount 
of his accumulated secretarial payments or, in lieu thereof, should he so elect, 
(b) an annuity or a deferred annuity which shall be the actuarial equivalent of 
said accumulated secretarial payments. 


2. Should a participating secretary, after one year or more of subsequent 
service and before retirement, die, his accumulated secretarial payments shall be 
paid to his estate or to such person or persons as he shall have nominated by 
written designation duly executed and filed with the Retirement Fund Board. 

3. Should any participating secretary, after withdrawal following any period 
of service, subsequently reenter active service, he shall not be entitled to credit 
for prior service; and payments by him and on his behalf shall be made accord- 
ingly, provided, however, that upon the restoration of a disability beneficiary to 
active service, credits on account of his Association annuity reserve and secretary’s 
annuity reserve shall be transferred to the secretaries savings account and. to 
the Associations reserve account, respectively. Upon withdrawal or retirement 
later on he shall be given such credit for these reserves as the actuary of the 
Retirement Fund Board shall certify and the Retirement Fund Board shall approve 
as the actuarial equivalent of them. 


4. The membership of a participating secretary in the Retirement Fund shall 
be terminated, and his Association service shall cease if he shall not be employed 
as a secretary for a period of more than one continuous year; or if in any period 
of five years he shall not be employed as a secretary for a period of two years; 
or if he withdraws his accumulated secretarial payments. 


DIsABILITY RETIREMENT 


Section 9. Retirement upon disability shall be made and discontinued as follows: 
1. Upon the application of a participating secretary, or of one entitled to act 
in his behalf, or upon the application of the participating Association employing 


33 


fim, the Retirement Fund Board shall retire said participating secretary on a 
disability allowance if he is under the age of sixty years, and on a regular allow- 
ance as provided in Section 12 if he has attained such age, provided the physician 
or physicians designated by the Retirement Fund Board, after a medical examina- 
tion of said participating secretary made at his place of residence or at a place 
mutually agreed upon, shall certify to the Retirement Fund Board that said 
participating secretary is physically or mentally incapacitated for the performance 
of duty and that he ought to be retired, and provided, further, that he is entitled 
to be credited with five or more years of Association service. 


2. Once each year, the Retirement Fund Board may require any disability 
beneficiary, while still under the age of sixty years, to undergo medical examina- 
tion by a physician or physicians designated by the Retirement Fund Board, said 
examination to be made at the place of residence of said beneficiary or other 
place mutually agreed upon. Should such physician or physicians thereupon 
report and certify to the Retirement Fund Board that such disability beneficiary 
is no longer physically or mentally incapacitated for the performance of duty or 
that such disability beneficiary is able to engage in a gainful occupation, and 
should the Retirement Fund Board concur in such report, then payments of the 
Association annuity shall be discontinued or reduced to an amount to be de- 
termined by the Retirement Fund Board. 


3. Should any disability beneficiary while under the age of sixty years refuse 
to submit to at least one medical examination in any year by a physician or 
physicians designated by the Retirement Fund Board, his Association annuity 
shall be discontinued until the withdrawal of such refusal and should such refusal 
continue for one year, all his rights in and to the Association annuity payable 
under these by-laws shall be forfeited. 


ALLOWANCE ON DISABILITY RETIREMENT 


Secrion 10. On retirement for disability, a participating secretary shall receive 
a retirement allowance which shall consist of: 

1. A secretary’s annuity which shall be the actuarial equivalent of his accumu- 
lated secretarial payments, and 


2. An Association annuity which, together with the secretary's annuity, shall 
be sufficient to produce a retirement allowance of one percentum of his final 
salary multiplied by the number of years of his Association service, but, in any 
case, not less than twenty percentum of said final salary, unless the rate of 
allowance to which he might have been entitled had retirement been deferred 
until age sixty is less than twenty percentum of said final salary, and in such 
case, such lesser percentum of said final salary. 


REGULAR RETIREMENT 


Secrion 11. Any participating secretary who is sixty years of age or over may 
retire as a secretary of the Young Men’s Christian Association by filing with the 
Retirement Fund Board a written statement, duly attested, setting forth at what 
time subsequent to the execution and filing of said application he desires to cease 
to be an Association employed officer. The filing of said application on forms 
provided by the Retirement Fund Board shall automatically retire said participating 
secretary at the time specified. 


34 


ALLOWANCE ON REGULAR RETIREMENT 


SEcrIon 12. 


1. On regular retirement a participating secretary shall receive a retirement 
allowance which shall consist of: 


a. A secretary's annuity which shall be the actuarial equivalent of his accumu- 
lated secretarial payments and 


b. An Association annuity of three-fourths of one percentum of his final salary 
for each year of subsequent service, and 


c. A further Association annuity of one and one-half of one percentum of his 
final salary for each year of prior service certified on his prior service certificate 
provided his Association service has been continuous from the date of the formal 
establishment of the Retirement Fund. 


ALTERNATIVE RETIREMENT BENEFITS 


Section 13. At the time of his retirement, before the first payment on account 


of any benefit is made, any participating secretary, or, if he is incompetent, his 
wife, or a committee of his estate, may elect: 


a. To receive his benefits in a retirement allowance payable throughout his 
life, or 


b. To receive the actuarial equivalent of his retirement allowance at that time 


in a lesser retirement allowance, payable throughout life, in accordance with any 
of the following options: 


Option I. He may elect to receive the value of his ordinary retirement allow- 
ance in a retirement allowance payable at a lesser annual rate than the ordinary 
retirement allowance but with the provision that the retirement allowance shall 
be payable during his life, and upon his death an amount shall be paid to such 
person as he may have nominated, equal to the cash value of his ordinary retire- 
ment allowance at the time of his retirement minus the amount of the retirement 
allowance payments which he shall have received prior to his death; or 


Option II. He may elect to receive the value of his ordinary retirement allow- 
ance in a retirement allowance payable at a lesser annual rate than the ordinary 
retirement allowance, but with the provision that the retirement allowance shall 
be payable during his life, and upon his death shall be continued and paid to 
such person as he may have nominated at the time his allowance began; or 


Option III. He may elect to receive the value of his ordinary retirement allow- 
ance in a retirement allowance payable at a lesser annual rate than the ordinary 
retirement allowance, but with the provision that the retirement allowance shall 
be payable during his life, and upon his death one-half of the retirement allow- 
ance shall be continued and paid to such person as he may have nominated at the 
time his allowance began; or 


Option IV. He may elect to receive the value of his ordinary retirement allow- 
ance in a retirement allowance payable at a lesser annual rate than the ordinary 
retirement allowance, but with the provision that some form of insurance pay- 
ment shall be made at the death of the secretary, provided that the Retirement 
Fund Board shall approve of the form of the retirement allowance and the 
insurance benefits selected by the secretary. 


In case the secretary does not elect to convert his retirement allowance into one 
of the optional forms prior to the date as of which the first payment of his allow- 


35 


ance is due, he shall be paid an ordinary retirement allowance. If he selects a 
benefit in lieu of the ordinary retirement allowance the amount of the lesser retire- 
ment allowance shall be determined by the actuary at such an amount that the 
benefits selected by him in lieu of the ordinary retirement allowance shall have 
the same cash value at the retirement age as the ordinary retirement allowance. 
The beneficiary selected by the secretary under an optional benefit shall be a 
person having an insurable interest in his life and his designation shall be duly 
ackowledged and filed with the Retirement Fund Board. 


ARTICLES OF INCORPORATION 


AN ACT TO INCORPORATE THE YOUNG MEN’S CHRISTIAN ASSO- 
CIATION RETIREMENT FUND for the benefit of employed officers of Young 
Men’s Christian Associations after their retirement from active service. 


The People of the State of New York, represented in the Senate and Assembly, 
do enact as follows: 


Section 1. F. Wayland Ayer, James H. Post, Sereno P. Fenn, Lucien T. 
Warner, Gerald W. Birks, John R. Mott, L. Wilbur Messer, Alfred E. Marling, 
and Raymond P. Kaighn and their successors are hereby created a body corporate 
by the name The Young Men’s Christian Association Retirement Fund, Inc. 


Section 2. The purpose of said corporation shall be to establish and maintain 
a retirement fund for the benefit of those who have been employed officers of a 
Young Men’s Christian Association, when they shall have retired from active 
service, and who become eligible to the benefits of the said fund under the condi- 
tions to be established by the Board of Trustees. 


Section 3. The corporation hereby formed shall have power to take and hold, 
by bequest, devise, gift, purchase, or lease, either absolutely or in trust for any 
of its purposes, any property, real or personal, without limitation as to the amount 
or value, except such limitation as the Legislature shall hereafter impose; to convey 
such property and to invest and reinvest any principal and deal with and expend 
the principal and income of the corporation in such manner as in the judgment 
of the Board of Trustees will best promote its objects. The persons named in 
Section 1 of this Act, or a majority of them, shall hold a meeting and organize 
the corporation and adopt a constitution and by-laws not inconsistent with the 
constitution and laws of this State, which constitution and by-laws from time to 
time shall be subject to amendment. The constitution shall prescribe the number 
of trustees by whom the affairs and business of the corporation shall be managed, 
the qualifications, powers, and manner of selection of the trustees and officers of 
the corporation, and any other provisions for the management and disposition of 
the property, and regulation of the affairs and fulfilment of the objects of the 
corporation which may be deemed expedient. 


Section 4. This corporation is not established, and shall not be maintained og 
conducted, for pecuniary profit and shall have the status of a religious, educa- 
tional, or benevolent corporation. None of its trustees, officers, members, or 
employes shall receive any pecuniary profits from the operation thereof, except 
reasonable compensation for services in effecting one or more of its purposes; 


36 


it shall be subject to the provisions of Sections thirty-nine and forty-five of the 
insurance law and the amendments thereof, so far as the same are applicable 
thereto and are not inconsistent with the provisions of this Act. 


Secrion 5. This Act shall take effect immediately. 


‘BOARD OF TRUSTEES OF YOUNG MEN’S CHRISTIAN ASSOCIATION 
RETIREMENT FUND 


347 Madison Avenue, New York City 


F. WAYLAND AYER, Chairman 
James H. Post, Treasurer 
SERENO P. FENN 

LucieEN T. WARNER 

GERALD W. Birks 

Joun R. Mort 

L. WitBur MESSER 

ALFRED E. MARLING 

Raymonp P. Kaicun, Secretary 


37 


EXHIBIT H 


INTERNATIONAL CONVENTION ACTION TO ESTABLISH A RETIREMENT 


Funp PLAN FOR EMPLOYED OFFICERS OF THE YOUNG 
MEN’s CHRISTIAN ASSOCIATION 


The following recommendations were adopted by the 39th International Conven- 


tion of Young Men’s Christian Associations held at Cleveland, Ohio, May 13, 1916. 


Recommendation XI of the Report of the Commission of Five on Training 


Agencies, passed at the Cincinnati Convention of 1913, was revised to read as 
follows: 


if 


There is hereby established a retirement fund, under the name of the 
“Young Men’s Christian Association Retirement Fund” for the benefit of 
those who have been employed officers of the Young Men’s Christian Asso- 
ciation, when they shall have retired from active service and are eligible 
to the benefits of the Fund under the conditions to be hereafter ‘established. 


The organization, accumulation, management, and disposition of this fund 
shall be committed to a board of six trustees to be appointed by the Inter- 
national Committee, and such six trustees so elected shall, as soon as 
practicable, divide themselves into three classes whose terms of office shall 
expire respectively at the adjournment of the first, second, and third 
International Conventions following the Convention of 1916 and at each 
International Convention following the Convention of 1916, one third of 
such trustees shall be appointed in the same manner as herein provided 
for the selection of the original six trustees. 


Said trustees shall consist only of men eligible to active membership in 
the Young Men’s Christian Association. Any vacancies in their number 
by reason of death, inability to serve, or otherwise, until the next Inter- 
national Convention, shall be filled by appointment of the International 
Committee. 


The trustees shall publish annually a statement of the year’s receipts and 
disbursements and at each International Convention they shall make a 
full report. 


In the accumulation of such fund the International Committee of the 
Young Men’s Christian Associations is hereby instructed and the several 
State Committees and the Dominion Committee of Canada and the Local 
Boards of Directors are earnestly requested to cooperate, in order that 
the fund may be available as speedily as possible. 


The said trustees shall be and are hereby empowered to make such rules, 
regulations, and conditions concerning the accumulation and disposition of 
such fund as to them may seem best, not inconsistent with this resolution 
or with any action of the International Convention, and such rules and 
regulations and conditions shall be operative from the time of their adop- 


38 


These additional resolutions were adopted by the 39th International Convention 
held at Cleveland, Ohio, May 13, 1916. 


tion by such trustees and until the adjournment of the International 
Convention next thereafter, but no longer, unless the said Convention shall 
expressly approve thereof. 

I, For convenience of administration the majority of the Board of Trustees 
shall be selected from Associations convenient to each other. 


Te That the Retirement Fund shall be established on a scientific basis as 
determined by actuarial studies of the facts in the case. 


Wale That when the Board of Trustees decides on the minimum age, length of 
service, amount of annuity, and other conditions on which the Fund shall 
be operated, it submit the same to Associations and employed officers of 
North America. That the Fund be immediately made operative when con- 
sent to the plans is received from a number deemed sufficient by the Board 
and its actuarial advisers. 


The following recommendations were adopted by the 40th International Conven- 
tion held at Detroit, Michigan, November, 1919. 


That the plan proposed by the Board of Trustees of the Young Men’s Christian 
Association Retirement Fund be approved and that the said Board of Trustees be 
instructed to proceed to take such other steps as are necessary to make the Fund 
operative at the earliest possible date. 


(Because of the need for a Canadian Representative on the Board.) “This 
convention authorizes the appointment by the International Committee of one 
additional member of the Board of Trustees for the Retirement Fund for the 
term expiring with the International Convention of 1922.” 


39 ° 


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